Trucking is one of the most profitable companies. However, starting such a business can be overwhelming, considering the prices of trucks sometimes read like phone numbers.
Luckily, there are many ways you can access financing to start a trucking business, such as ITIN loans, which are available to immigrants. Here are the top 5 best vehicles you can use to create your dream trucking business.
Things to consider when you are going to start a trucking business
a) Licenses and permits
As most long-haul trucks operate between state lines, several permits are required, including a USDOT number and a BOC-3 filing. You will also need a motor carrier operating authority, an international fuel tax agreement decal, and international registration credentials.
b) A Trucking Business Plan
Secondly, create a business plan. A basic blueprint includes budget, equipment needed, business expansion, financial planning, and marketing analysis and strategy.
c) Finances
Trucks are expensive to purchase and run, as a new truck will set you back about $125,000. Meanwhile, maintenance costs are about $20,000 annually. That does not include insurance and truck driver payroll costs.
You need to figure out how to cover these costs and any emergency breakdowns not covered by warranty.
d) Expert help
Even if you are an owner-operator, you can’t know everything about running a trucking business. Experts in these fields best deal with other tasks like accounting and filing taxes.
Best 5 vehicles to build your trucking business
1. Freightliner
Freightliners are reliable and efficient commercial trucks with state-of-the-art technology. As the number one selling brand of medium and heavy-duty trucks (Class 6-8) in North America, it’s great for fuel economy and short-haul runs.
2. Kenworth
Experienced truckers act as consultants for constructing these trucks, with unique navigational systems and a solid feel from the heavy materials used. That makes the Class 8 trucks suitable for extended hauling services.
Kenworth is the first heavy-duty truck with an aerodynamically optimized body design and a raised-roof sleeper cab.
3. Peterbilt
As a sister company to Kenworth, Peterbilt Trucks produces heavy and medium-duty commercial vehicles, consistently producing the most rugged trucks. As such, they are efficient, valuable, and reliable beasts, suitable for long-haul assignments.
4. Volvo
Volvo trucks are renowned internationally for their long-haul trucking performance, offering premium comfort, engine efficiency, and excellent parts and service programs. These trucks come with class-leading aerodynamics and ergonomics.
5. International
International Trucks are not just long on looks; they produce quality medium and heavy-duty trucks and severe-service trucks for long-hauling truck operations. The trucks are fuel-efficient and aerodynamically advanced.
Financing your trucking business idea
A trucking business might require a high amount of starting and operating capital. As a startup, there are several ways to finance your trucking business idea:
Equipment financing: involves buying or renting equipment from lessors for some time instead of buying them cash. This gives you enough time to pay for them if you want to buy the equipment eventually.
ITIN loans: are an excellent option for immigrants to access financing since you don’t need to be an American citizen to qualify for one.
Bank Loans: banks offer loans to businesses in exchange for adequate returns for their investment. The loans are time-bound and are a reliable method of financing your business. The advantage of bank loans is that the interest is tax-deductible.
Online lenders: take this route if you have a poor credit rating since the interest rates can be stiff. Some online lenders offer semi-truck financing as the truck is the collateral.
Bottom line
Starting and managing a trucking business can be challenging, especially in matters of bankrolling. You could always finance the start-up using funding sources such as banks or ITIN loans.
Some of the best trucks to build your trucking business fleet include Peterbilt, Freightliner, and Volvo. Follow the link in the introduction section for more information on ITIN loan applications for purchasing trucks.